ADP 401k Essential for small business
Simple, affordable, and flexible retirement plans backed by the experience and service of ADP®.
SECURE 2.0 Act is here
Take advantage of increased tax incentives or ADP's FREE retirement plan review.
A value-added provider
Amazon DSP chooses ADP for retirement services
With flexible, customizable retirement plan options, a reputation for exceptional service, and advanced technology that makes plan administration easy, it’s no wonder companies like Amazon trust ADP to provide innovative, secure, retirement solutions.
Are retirement plans mandatory in your state?
Many require employers to offer retirement plans. Others may follow. Is one of them yours? Need help?
All the benefits of a 401(k), and we do the work for you
Backed by decades of experience and trusted by over 1 million small businesses, payroll leader ADP offers 401(k) plans that make it easy to provide employees with a retirement benefit.
Simplicity
From our powerful plan dashboard to helpful administrative services like notification delivery and IRS filings, we make it easy.
Compliance
ADP takes on fiduciary responsibilities for you. This includes both administrative and investment management - so you can stay focused on your business.
Flexibility
Our standard plan fits most small businesses and you can modify eligibility requirements, matching contributions, and more to get a plan that fits you best.
SECURE 2.0 Act Tax Credit Calculator
Discover your potential savings with SECURE 2.0
Offering a 401(k) plan is more affordable for small businesses than ever, thanks to new tax credits introduced by the SECURE 2.0 Act.
This calculator is for illustration purposes only and should not be construed as tax advice. Please consult with your own tax professional for advice.
Monthly Investment Service Fee: ADP Strategic Plan Services, LLC will impose a fee of .10% of covered assets, subject to a minimum fee of $30 per month, as more further described below.
The amount of the tax credit each year is limited. Employers with up to 100 employees may be entitled to an annual tax credit for three years equal to 50% of the costs of starting up and administering a retirement plan and for participant education services. Employers with 50 employees or fewer may be entitled to 100% of the costs for these services. The maximum credit is up to the greater of (1) $500 or (2) the lesser of (1) $5,000 or (2) $250 multiplied by the number of non-highly compensated employees eligible to participate in the plan. An additional credit of $500 per year for the first three years is available to plans that offer an automatic enrollment feature that meets the requirements of an Eligible Automatic Contribution Arrangement (EACA) as defined in Internal Revenue Code Section 414(w)(3.) The maximum credit over 3 years of $16,500 is available to plans that cover at least 20 non-highly compensated employees and offer automatic enrollment.
Additionally, an annual tax credit for eligible employer contributions for five years of up to $1,000 per employee earning $100,000 or less may apply to employers with up to 50 employees but phases out from 51 to 100 employees.
The availability and amount of a tax credit depends on your situation. ADP does not provide tax advice, and you should consult with your own tax professional.
Customize your plan with affordable options ¹
- Automatic enrollment
- Employee eligibility
- Employer contributions
- Vesting schedules
- Safe Harbor plans
There’s more to consider than just the monthly fee
When saving for retirement, small percentages can make a big difference. ADP's fee structure can help you maximize long term earning potential.
Learn how a 0.5% fee difference can really add up4.
Best Employee Retirement Plan for 2026
ADP was named best for small business by Business.com*
Small business 401(k) FAQ
401(k) costs vary and fee structures differ from provider to provider. It is best to review each company's offering closely considering both near-term and long-term expenses as well as which fees are paid by the employer and the employee. Differences in pay fee structures can impact the long-term savings potential of the 401(k).
Yes, small businesses can offer a 401(k). There are plans designed for sole proprietors as well as companies with employees and each plan type has its own requirements and features. 401(k) plan providers often offer several options with varying fee structures.
Creating a 401(k) - sometimes called 'sponsoring a 401(k)' - involves a number of steps. Often times a plan provider will handle many of these steps for you. Activities required for establishing a 401(k) include selecting a plan, setting up a trust to hold plan assets, maintaining records of employee contributions and values, and providing information to plan participants. There are other administrative tasks as well like connecting your 401(k) plan contributions to your payroll process.
That depends. A small business owner who is actively involved in the business can participate in the company's 401(k) as an employee - making contributions on behalf of their own retirement savings. However, an owner who is passively involved may not be able to contribute. Consult with a certified financial advisor to better understand your options.
Sometimes. If you are a self-employed member of a small business that operates as an LLC, the IRS allows you to set up a 401(k) plan for yourself. But not every member of an LLC is eligible, as there are some restrictions. For example, the IRS doesn't consider a member’s passive involvement in an LLC as self-employment when no services are provided to the business. Such individuals may not be able to participate in that company's 401(k). Consult with a certified financial advisor to better understand your options.
More than a transaction - a matter of trust
Your employees count on you and you can count on ADP. We’re here to help you evaluate your choices and to provide tools and resources that make it easy to offer your own 401(k).
Let's get started
Whether you want something simple and turn-key or need to customize,
we're here to help. Let's have a conversation.
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*Business.com article "Best Business Employee Retirement Plans for 2024" Published May 2, 2024
† This calculator is for illustration purposes only and should not be construed as tax advice. Please consult with your own tax professional for advice.
Monthly Investment Service Fee: ADP Strategic Plan Services, LLC will impose a fee of .10% of covered assets, subject to a minimum fee of $30 per month, as more further described below.
The amount of the tax credit each year is limited. Employers with up to 100 employees may be entitled to an annual tax credit for three years equal to 50% of the costs of starting up and administering a retirement plan and for participant education services. Employers with 50 employees or fewer may be entitled to 100% of the costs for these services. The maximum credit is up to the greater of (1) $500 or (2) the lesser of (1) $5,000 or (2) $250 multiplied by the number of non-highly compensated employees eligible to participate in the plan. An additional credit of $500 per year for the first three years is available to plans that offer an automatic enrollment feature that meets the requirements of an Eligible Automatic Contribution Arrangement (EACA) as defined in Internal Revenue Code Section 414(w)(3.) The maximum credit over 3 years of $16,500 is available to plans that cover at least 20 non-highly compensated employees and offer automatic enrollment.
Additionally, an annual tax credit for eligible employer contributions for five years of up to $1,000 per employee earning $100,000 or less may apply to employers with up to 50 employees but phases out from 51 to 100 employees.
The availability and amount of a tax credit depends on your situation. ADP does not provide tax advice, and you should consult with your own tax professional.
- ADP cannot provide tax or legal advice. Clients should discuss with their tax advisor. Only registered representatives of ADP Broker-Dealer, Inc. (ADP BD), Member FINRA, an affiliate of ADP, Inc., One ADP Blvd, Roseland, NJ 07068 or, in the case of certain products, a broker-dealer firm that has executed a marketing agreement with ADP, Inc., may offer and sell ADP retirement products or speak to retirement plan features and/or investment options available in such ADP retirement products.
- Strategic Plan Services, LLC (SPS) is an SEC Registered Investment Adviser. SPS will assess an annual fee for its investment management services equal to 0.10% of Eligible Assets, subject to a monthly minimum as described in the following sentence. This annual fee will be billed monthly, will be subject to a monthly minimum of $30. ADP will collect this fee on behalf of SPS and will calculate this fee for each billing period by multiplying (1) the average daily balance of your Plan’s Eligible Assets as reflected on ADP’s recordkeeping system for the billing period, times (2) the Daily Rate (0.10% divided by the number of days in the calendar year), times (3) the number of days in the billing period. The average daily balance of Eligible Assets for each billing period will be reflected on your invoice. Eligible Assets include all Plan assets except (1) those invested in Plan Sponsor Investment Options (as defined in your Investment Management Agreement) and (2) any outstanding participant loan balances (for this purpose, outstanding participant loan balances include outstanding loans that have been deemed distributed under Internal Revenue Service regulations and any accrued interest on such deemed distributions).
ADPRS-20230609-4582 - Prices vary based on customization.
- All data and information shown is for illustrative purposes only and is not representative of any plan or participant. Assumes $3,000/year contribution and 7% annual return.